am
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Post by am on Jan 3, 2016 23:23:38 GMT
He's got several trading businesses (see the various sites listing directorships) so we can't assume that a particular business is the one needing capital, though it is the most parsimonious interpretation especially given the supra-market rent. He may wish to be cagey about which business needs the capital in case it spooks suppliers. (Compare anonymous borrowers on FC.)
My take was that the security wasn't very good, but since he's borrowing in a personal capacity we effectively have additional security in the other properties he owns. I would have liked more time for investigation.
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am
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Post by am on Jan 2, 2016 14:46:10 GMT
Thanks have now found them and see that these two items are interested paid only each month with purchase cost being repaid at termination of loan, and my question is how do you calculate if this is better than being paid combination of part principle + interest each month. Realise that this item is for a very small amount but if the principle was say for a greater amount < £500 at this rate of 8% would you be better of having principle being paid during the term which would allow you to re invest it again while the original loan was being paid down? Well that is a very minor consideration and depends what options you think you'll have for reinvesting capital further down the line. The much bigger consideration IMHO is that the property loans have hard asset security behind them whereas most SME loans on FC have only the dubious figleaf of a personal guarantee (which may well prove worthless) A non-amortising (bullet) repayment requires that the borrower can get his hands on funds equal to the capital value of the loan at the end of the loan. That makes them appropriate for loans for individual projects, such as property development loans, where cash inflows naturally occur at the end of the loan period. For loans for other purposes, such as working capital, I think that an amortising loan, where the capital is repaid over the course of the loan out of the borrower's cash flow, is to be preferred, as otherwise there is a risk of a borrower paying the interest, but not generating enough additional cash flow (or paying it out as dividends) to pay off the capital at the end, so one would be dependent on the borrower being able to take out a new loan to repay the old one.
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am
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MoneyThing (MT) in Administration
BPF311
Jan 2, 2016 9:53:45 GMT
Post by am on Jan 2, 2016 9:53:45 GMT
That's right. It won't last long though (I reckon a few minutes) As it's a second tranche, many of the people who invested in the first tranche will be giving it a miss, so it might take a bit longer.
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am
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Post by am on Jan 1, 2016 17:35:15 GMT
Thank you for all your comments, beginning to see that I need much more information regarding the SM so could you please comment on the following . Original loan was £80,000 at 9.2% over 60 months Risc band C . 28 payments made 32 remaining next payment of 26 Jan.2016 Bad debt risk 3.2% Loan is in two parts: Part 1 Buyer rate 9.2% selling price £47.26 Part 2. Buyer rate 9% selling price £35.37 Why is the two parts rates different? Thank Back in the day when that loan was taken out loans were funded by reverse auctions. That resulted in loans being made up of loan parts with different rates. So if even if people offer them on the secondary market at par, they may well have different rates. You can be better off buying a loan part lent at the marginal rate at a premium that a loan part lent at a lower rate at par. On the other hand if loan parts are sold a different premiums/discounts they would have different buyer rates even if the original rate was the same. (I guess one of these loan parts started at £80 and the other at £60.) If you give us the loan number (and the parts haven't been sold) someone could give a more precise explanation specific to these loan parts.
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am
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Post by am on Dec 31, 2015 9:28:06 GMT
Just read in the FT that Samir Desai gets CBE in the New Year Honours List Mr Desai said: “This honour is testament to the hard work of the Funding Circle team who have helped originate £1.25bn of loans from thousands of investors to small businesses in the last five years, creating over 50,000 new jobs globally.” Are we congratulating or picking over some inflated numbers??? If they've done £1bn in the last year then £1.25bn over the last year seems quite plausible. Job creation I expect is harder to quantify. They might also like to crow over jobs saved, through allowing companies to trade through a cash flow crisis, if that's not included under jobs created.
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am
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Post by am on Dec 30, 2015 11:40:48 GMT
15578 property loan in TS7 repaid today after 3 months, 9 months early. Sometimes it looks like it beats the SM to take the CB and just wait! We just need new CB property loans in the new year to soak up all this cash. I will take 1% CB if they repay like this. I've reduced my FC exposure by over 10% over the last couple of months because property loans have been repaying faster than there have been new (decent) property loans becoming available.
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am
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Post by am on Dec 27, 2015 23:19:37 GMT
Of the last 10 investments there were 3 £1 investments and 2 £2 investments - perhaps some people are reinvesting their interest.
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am
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Post by am on Dec 27, 2015 12:00:21 GMT
Assetz SME Capital Ltd headline numbers make interesting reading. Net Worth £-954k. Assets £368.7k. Liabilities £1.3m. Cash of £1.5k. Also of interest is the significant number of Charges registered against the company.
Certainly worth a look and particularly so if you invested in the business earlier this year through Seeders. Those appear to be the 31/3/2014 figures, except that most (not all) data sources, including Companies House, give the Net Worth as £-786k. The 2015 figures are net worth £-2.75m, intangibles £380k, tangibles £26k, current assets £1.2, including cash of £95k, current liabilities of £1.8m, and long term liabilities of £2.5m. So Assetz SME Capital had a burn rate of £2m per annum. beta.companieshouse.gov.uk/company/08007287Anyone interested should presumably also look at the other companies in the group.
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am
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Post by am on Dec 24, 2015 11:20:56 GMT
The basic way is to note the loan part number, then open up your loans, select the loan part view, sort by loan number, and step through the list (for 30 or so pages) till you find the loan part with that number. I keep thinking I should set up a spreadsheet so I have a better view of my portfolio that FC offer. As my loan id book by part is over 100 pages I do the same but export to csv and into excel every week or so and search for loan ID from there. I think you need to export this because of the longstanding bug that if you sort the loan book as an online view it shows repeat loans on subsequent pages (ie it cannot sort properly) I was told a couple of years ago that this bug was too complicated to fix and I believe it is still there. I just use the csv file for viewing and do not keep it. I believe that it's OK if you sort by (the unique) loan part number; the bug occurs when a value in the column you're sorting by occurs more than once. I'm shocked to hear that it's considered too complicated to fix, but perhaps that's Customer Service, rather than an official IT position.
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am
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Post by am on Dec 23, 2015 22:57:19 GMT
I got 2 loans repaid early but have no clue which one... I only see a part id, no reference (not to mention link) to original loan. How do you, o wise elders, do that? Do you track all your parts in spreadsheet or something? The basic way is to note the loan part number, then open up your loans, select the loan part view, sort by loan part number, and step through the list (for 30 or so pages) till you find the loan part with that number. I keep thinking I should set up a spreadsheet so I have a better view of my portfolio that FC offer.
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am
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Post by am on Dec 23, 2015 10:10:27 GMT
Also, with the QAA being full, most of my idle funds are in the QAA queue earning nothing at all. With the new functionality, I divide my idle funds into two portions - the portion I anticipate may be matched to loans "today" sits in the MLIA as before, and the portion that probably won't goes as a "direct" investment, ready to be pulled out at a moment's notice in case there's a surge in activity. As I understand it, the difference is that the loan can't go ahead without the underwriters' funds, so they don't run the risk of missing out on the loan.
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am
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Funding Circle (FC)
E-Alert!
Dec 23, 2015 9:12:13 GMT
Post by am on Dec 23, 2015 9:12:13 GMT
I think the maximum Autobid does is 2000, so mine bids 2000 every loan, but it doesn't matter whether that loan is 10k or a million, it will still bid the same amount. No chance of selling on the SM I guess so let's hope it pays up!!! No idea why I beat bots on this one Once you've earned enough interest to cover the costs (which doesn't take long on an E), you can put it on the secondary market at par, or at discount. Given the demand shown for E's there's a fair chance that someone will take it, even if a badly programmed bot doesn't.
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am
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Funding Circle (FC)
E-Alert!
Dec 22, 2015 21:23:12 GMT
Post by am on Dec 22, 2015 21:23:12 GMT
Yeah that 2k in that E was me. I thought Autobid capped how much of a loan it would enter. It does, but the cap is one of 0.25%, 0.5% or 1% of your account, depending on what setting you've selected. The advanced settings on Autobid do (IIRC) allow you to turn off individual rating bands.
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am
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Post by am on Dec 22, 2015 11:22:56 GMT
Newquay paid up still with two months to go. Losing a 10%-er before Christmas when I was nicely fully invested is a bit of a blow. 15022, 15093, 15182 - may be later ones too? Also Southampton 12579, 12660, 13103 and 13705. The Newquay development project (9 tranches) is still running.
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am
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Post by am on Dec 21, 2015 23:26:29 GMT
Mainly interested in buying shares of a company listed on the London Stock Market which is heavily committed to P2P and especially for general loans, and not just for mortgage loans. I am a novice in this field. I have a small investment with Zopa, but would prefer to invest into P2P via the purchase of shares. Is there any such company out there which does that? Any information would be most welcome. There are (at least) 3 investment trusts - IIRC, P2P Global Finance (P2P), GLI Innovative Finance (GLIF) and FC SME (FCIF). As I understand the last solely invests in loans on the Funding Circle platform; the other two are multi-platform, and the first at least invests in multiple countries. You can probably track down the prospectuses for these. There has been some discussion of these trusts here.
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